Question: Following are the consolidated balance sheet accounts of Brimer Inc

Following are the consolidated balance sheet accounts of Brimer Inc. and its subsidiary, Dore Corporation,as of December 31, 20X6 and 20X5.

Additional Information
1. On January 20, 20X6, Brimer issued 10,000 shares of its common stock for land having a fair value of $215,000.
2. On February 5, 20X6, Brimer reissued all of its treasury stock for $44,000.
3. On May 15, 20X6, Brimer paid a $58,000 cash dividend on its common stock.
4. On August 8, 20X6, Brimer purchased equipment for $127,000.
5. On September 30, 20X6, Brimer sold equipment for $40,000. The equipment cost $62,000 and had a carrying amount of $34,000 on the date of sale.
6. On December 15, 20X6, Dore paid a cash dividend of $50,000 on its common stock.
7. A Dore recognized goodwill impairment loss of $3,000 in 20X6.
8. Deferred income taxes represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial reporting.
9. Net income for 20X6 was as follows:

Consolidated net income ... $231,000
Dore Corporation ....... 110,000
10. Brimer owns 70 percent of its subsidiary, Dore. No change in the ownership interest in Dore occurred during 20X5 and 20X6. No intercompany transactions occurred other than the dividend paid to Brimer Inc. by its subsidiary.

Prepare a consolidated statement of cash flows for Brimer Inc. and its subsidiary for the year ended December 31, 20X6, using the indirectmethod.

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  • CreatedMay 23, 2014
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